2021 House Bill 4290 / 2022 Public Act 5

Give tax breaks to some home buyers

Introduced in the House

Feb. 23, 2021

Introduced by Rep. Mari Manoogian (D-40)

To grant $5,000 state income tax exemptions, and $10,000 on joint returns, if the money is deposited in a specialty savings account the bill would authorize for individuals who have not bought or owned a Michigan home in the past three years (labeled by related bills as "first time home buyers"). The exemptions could be claimed for up to five years, meaning $50,000 could be exempted from state income tax liability over time by certain individuals. A version of this proposal was vetoed by Republican Gov. Rick Snyder in 2018.

Referred to the Committee on Tax Policy

March 24, 2021

Reported without amendment

Without amendment and with the recommendation that the bill pass.

April 22, 2021

Passed in the House 86 to 18 (details)

To grant $5,000 state income tax exemptions, and $10,000 on joint returns, if the money is deposited in a specialty savings account the bill would authorize for individuals who have not bought or owned a Michigan home in the past three years (labeled by related bills as "first time home buyers"). The exemptions could be claimed for up to five years, meaning $50,000 could be exempted from state income tax liability over time by certain individuals. Legislative fiscal agency analysts estimate the bill will provide up to $19.8 million in benefits for these individuals, with an equivalent amount of revenue foregone by the state. A version of this proposal was vetoed by Republican Gov. Rick Snyder in 2018. See also House Bills 4289 and 4290.

Received in the Senate

April 27, 2021

Referred to the Committee on Finance

Oct. 28, 2021

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Jan. 20, 2022

Passed in the Senate 38 to 0 (details)

To grant $5,000 state income tax exemptions, and $10,000 on joint returns, if the money is deposited in a specialty savings account the bill would authorize for individuals who have not bought or owned a Michigan home in the past three years (labeled by related bills as "first time home buyers"). The exemptions could be claimed for up to five years, meaning $50,000 could be exempted from state income tax liability over time by certain individuals. Legislative fiscal agency analysts estimate the bill will provide up to $19.8 million in benefits for these individuals, with an equivalent amount of revenue foregone by the state. A version of this proposal was vetoed by Republican Gov. Rick Snyder in 2018. See also Senate Bill 145.

Received in the House

Jan. 20, 2022

Jan. 26, 2022

Passed in the House 85 to 17 (details)

Signed by Gov. Gretchen Whitmer

Feb. 9, 2022